You are not allowed to use dynamic accounting when doing tax cuts. You have to say they “cost” money, even though they probably won’t cost nearly as much as it says.
The question is, will a cut in the corporate tax rate stimulate the economy? If so, then it won’t cost what they say.
“You are not allowed to use dynamic accounting when doing tax cuts.”
That is correct, but what is more fundamental is that a tax cut is not a government expense no matter what type of accounting is used. It is merely not collecting as much revenue or reducing the rate at which revenue is collected. An expense occurs when you buy something or pay for a service (or give people money who did not pay it in as taxes—welfare). It is sad that the government gets away with calling tax cuts an expense.